Bankers Refer Unbankable Clients to Federal National

Good for the Bank and its Clients

When the bank is unable to provide financing for a government contractor or other small business client, Federal National can help.

  • Referrals to Federal National mean you don’t have to decline credit
  • Reliable and fast workout/troubled asset placement
  • Not a competitor - You retain or capture the depository relationship
  • Maintain relationships that may recover or achieve bankable status
  • High quality service and competitive pricing results in easy referrals and grateful customers

Federal National Financing Solutions

  • Asset Based Lending: Lending on A/R, modest inventory and/or equipment
  • Factoring: Working capital lines based upon A/R
  • Earned Unbilled Financing: Mid-cycle funding to help with payroll and vendor obligations
  • Vendor Payment Assistance: Negotiated agreements for relaxed payment terms with vendors
  • Financing Letters of Intent: Letters to prospects confirming Federal National’s financial support

Summary of Federal National’s Market

  • Commercial and Industrial (“C&I”) borrowers
  • Not conventionally credit worthy
  • Growing beyond their credit limit
  • Lines as small as $50,000 and as large as $6,000,000
  • Clients’ customers are strong businesses or government entities

Small Business Financing with Service, Value and Trust

  • Two decades of experience in government contractor financing• Good at commercial: Expertise with rigorous government requirements translates into professional and reliable financing to clients in and outside the government arena
  • Service: Fair and professional with prompt funding and next day settlements
  • Value: Pricing is fair, plainly disclosed and highly competitive in the non-bank market. Federal National is efficient and cost-effective, leveraging our strong balance sheet and institutional borrowing capability
  • Trust: Since 1992, proven track record of success and integrity, experienced management well known and respected in the industry

State and Local Account Debtors

Federal National can also work with state and local government accounts. Our capabilitywith states and municipalities is influenced by:

  • Expected payment terms
  • The paying office’s level of cooperation
  • State or municipality credit strength
  • Statutory support for payment assignments

Obstacles to Obtaining Financing from Federal National

Federal National avoids the following deal characteristics:

  • Bonding
  • Progress billings without clear, end-customer acceptance
  • Mechanics’ liens
  • Sales to big box retailers
  • Retail sales
  • Trucking/Transportation
  • Third-party payments such as insurance payments or settlements
Mark Moore, John Marshall Bank
Joe Sillay speaks with Mark Moore, EVP, John Marshall Bank about his experience with Federal National. watch the video

Unbankable

Federal National Market Preferences

Federal National finances based upon services performed or goods delivered. We like to know that the account debtor (the client’s customer) has received billed or billable economic value that supports our advances.

We serve many industries, including:

  • Business to Business or Business to Government
  • Staffing or staffing related businesses
  • Hi-Tech or IT services
  • Medical services
  • Value-added resellers
  • Simple services
  • Manufacturing